To build a new facility for producing 1.2 million tons of ethylene and related new materials, Sinopec Shanghai Petrochemical will invest 21.3 billion yuan in comprehensive technical upgrades and quality improvements

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Sinopec Shanghai Petrochemical will invest 21.3 billion yuan in comprehensive technical upgrades and quality improvements. On January 15, 2025, Sinopec Shanghai Petrochemical Co., Ltd. issued a announcement regarding the investment in such projects for technical upgrades and quality enhancements. In response to the requirements regarding energy conservation, carbon reduction, as well as safety and environmental protection, and taking into account the economic development and market demands in Shanghai and its surrounding areas, while building on its existing corporate foundation and making full use of the advantages of integrated refining and chemical production, Shanghai Petrochemical plans to invest approximately 21.307 billion yuan. This investment will be used to carry out comprehensive technical upgrades and improvements to the company’s operations, to restructure its refining facilities, to shut down 18 existing units such as those producing 700,000 tons of ethylene per year, and to build new units capable of producing 1.2 million tons of ethylene per year as well as other advanced chemical materials. Project Overview: Name of the construction project: Comprehensive Technical Transformation and Upgrading Project of Shanghai Petrochemical. Name of the construction entity: Sinopec Shanghai Petrochemical Co., Ltd. Name of the environmental impact assessment agency: Shanghai Jianke Environmental Technology Co., Ltd. Location of the project: Within the existing plant premises of Sinopec Shanghai Petrochemical Co., Ltd., in Shihua Sub-district, Jinshan District, Shanghai. Scope of the project: This project utilizes advanced process technologies to restructure the refining facilities while maintaining the existing refining capacity of 14 million tons per year. It involves shutting down the existing aging facilities for producing 700,000 tons per year of ethylene, as well as the No. 2 oxidation and No. 2 polyester plants, and constructing new facilities for producing 1.2 million tons per year of ethylene and related new materials, thereby improving the company’s overall safety and environmental performance. Project investment amount and source of funds: The company plans to invest approximately 21.307 billion RMB, with the funds coming from the company’s own resources. Project construction period: The construction period for the main part of the project is approximately 3 years, while the construction period for other facilities is about 5 years; the actual construction progress will ultimately determine the timeline. Market positioning and feasibility analysis: Once this project is put into operation, it will enable Shanghai Petrochemical to increase the variety of new material products it produces as well as its production capacity, thereby boosting the output of raw materials for new materials. The project has a clear development direction, broad market prospects, favorable technical and economic indicators. The energy consumption per unit of the product meets the requirements of **mandatory energy consumption standards; the product cost is competitive, safety risks are under control, and the overall competitiveness is strong.